Facebook is left in the dust as tech stocks bounce back from rout
There’s one notable name missing from the technology-led recovery in US stocks: Facebook Inc.
The social-media giant has gained less than 3 per cent since February 8, the day equity markets saw the trough of their worst sell-off in two years.
That puts it far behind other large-cap peers such as Amazon.com Inc, Microsoft Corp and Alphabet Inc, which have all risen at least 9 per cent in the same period. Apple Inc has advanced 11 per cent.
Tech stocks are leading the recovery after a rout that sent the S&P 500 Index to its first 10 per cent correction in two years.
The 68-member S&P 500 Information Technology index is close to recouping losses from the plunge and is up 8.8 per cent since February 8.
Financials are the next best performing sector with a gain of 6.5 per cent over that period.
The company led by Mark Zuckerberg is grappling with declining user engagement, while fourth-quarter earnings revealed that growth in daily active users was the slowest ever.
While Wall Street analysts defended the company after its results, the muted share-price trend compared with peers in the past two weeks indicates that some investors might not be convinced.